HSBC CSO demoted from executive committee amid cost-cutting reshuffle

HSBC’s Chief Sustainability Officer (CSO) Celine Herweijer has been removed from the bank’s executive committee as part of a reshuffle meant to simplify the group’s structure and cut costs.

The CSO will no longer form part of the leading decision-making executive committee at the bank – which will now be called the operating committee – from January 2025, after three and a half years.

She is one of seven senior leaders that were part of the bank’s 18-person executive committee that will not be part of its new 12-person operating committee.

HSBC refocusing on sustainability execution

Herweijer retains her role as Chief Sustainability Officer, reporting to HSBC’s newly appointed CEO, Georges Elhedery – who recently advised staff that the restructuring would lead to job cuts at senior management level. 

In February, the bank was advised by its board to refocus its sustainability strategy on execution, and created a new Sustainability Execution Committee tasked with overseeing the delivery of the bank’s climate targets.

HSBC published its first net zero transition plan in January 2024, and later disclosed emissions from capital market transactions (including debt and equity capital markets and syndicated loans) in the oil and gas and power and utilities sectors for the first time.

HSBC ‘still committed to net zero’

Speaking to Reuters this week, Elhedery said the bank remained “committed to supporting the transition to net zero”, but declined to comment on the implications of removing its sustainability lead from the top decision-making committee.

“The new structure will result in a simpler, more dynamic, and agile organisation as we focus on executing against our strategic priorities, which remain unchanged,” HSBC’s CEO said upon announcing the simplified structure last week. 

The changes, announced on October 22, follow the appointment of former Group CFO Georges Elhedery as CEO in September. The new structure is split between four business units, including Hong Kong and ‘Eastern Markets’, UK and ‘Western Markets’, Corporate and Institutional Banking, and International Wealth and Premier Banking.